Comptroller Thomas P. DiNapoli announced this week that school districts will have their property tax levy growth capped at 2% for the third consecutive year. This decision impacts 676 school districts.
The tax cap, introduced in 2012, limits how much the tax levy can increase each year. It is set at either 2% or the rate of inflation, whichever is less, although there are some exceptions. For the fiscal year ending June 30, 2025, the inflation factor is calculated at 4.12%.
DiNapoli emphasized that while inflation rates have dropped from their peaks, they are still above 2%. He advised school districts and municipal officials to be mindful of cost increases and manage their budgets carefully, especially as one-time pandemic aid is running out. This careful management is vital to ensure compliance with the tax cap law and to effectively handle local financial responsibilities.
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